The short answer
List every debt with its balance, rate and minimum. Stop adding new debt. Keep a small cushion so the next surprise doesn't go on a card. Pay every minimum, and throw everything extra at one debt at a time, highest interest first, or smallest first if you need quick wins. When one is gone, roll its payment onto the next.
Step 1: Get the facts on one page
For each debt, write the lender, what you owe today, the interest rate (ideally the APR), the minimum payment, the due date, and any fees. Statements and contracts have these. It's uncomfortable, and it's the single most useful step: vague debt feels bigger than real numbers.
Step 2: Protect priority debts
Not all debts carry the same consequences. Missing rent or mortgage payments, energy bills, taxes or fines can lead to losing your home, being cut off, or legal enforcement. Those come first, even before a credit card with a higher rate. Then the rest.
Step 3: Stop the bleeding
- Stop using the cards you're paying off. Remove saved card details from shopping sites.
- Avoid buy-now-pay-later for anything you couldn't pay for today.
- Never take a high-cost short-term loan to pay another debt.
- Keep about one month of essentials as a cushion (emergency fund calculator), so you don't borrow again at the first surprise.
Step 4: Choose a payoff order
Avalanche (highest interest rate first) costs the least. Snowball (smallest balance first) clears the first debt sooner, which keeps many people motivated. The debt payoff calculator compares both with your numbers. If the difference is small, choose the one you'll stick to.
Step 5: Find the extra
Every extra amount on top of the minimums shortens the whole plan, because it rolls forward when each debt is cleared. Look for it in your budget: wants first, then big fixed costs. Bonuses and refunds go straight to the target debt.
Consolidation, refinancing and balance transfers
Replacing several debts with one cheaper loan can help, but only if:
- the total cost, including all fees, is lower than what you'd pay now;
- the term isn't stretched so long that you pay more interest overall (check with the loan calculator);
- you close or stop using the old cards, or the debt simply comes back on top.
Be careful with offers that need your home as security for unsecured debts: if things go wrong, you risk the home.
Warning signs of debt-relief scams
- Upfront fees before anything is done.
- Promises to "wipe" debts or guarantees about results.
- Pressure to decide today, or advice to stop paying creditors and pay them instead.
Free, independent debt advice exists in most European countries, often through government or non-profit services. Use it before paying anyone.
When to get help
If minimums take more than you can afford, if you're borrowing to pay bills, or if creditors are already chasing you, talk to a free debt advice service now, and contact your lenders early. Many have hardship arrangements. Formal options such as debt restructuring or personal insolvency exist in many countries, with rules that differ widely; a qualified adviser can explain what applies to you.
After the last payment
Keep paying the same monthly amount, but to yourself: first finish the emergency fund, then goals and investing. You're already used to living without that money, which makes it the easiest saving you'll ever do.